The existence of a letter credit is not a substitution for proper business investigation concerning buyers

Name: The existence of a letter credit is not a substitution for proper business investigation concerning buyers
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A letter of credit only provides payment security for the seller; it does not guarantee that the buyer is reliable or will fulfill their obligations. Proper business investigation and due diligence on buyers is still necessary to minimize the risk of non-payment or other issues.

The Existence of a Letter Credit Is Not a Substitution